China's top construction machinery maker, Zoomlion, signed a purchase agreement with Italy's Compagnia Italiana Forme Acciaio Spa (CIFA) on Sunday.
Zoomlion, along with Goldman Sachs and two other investors, plans to buy CIFA for 271 million Euros (US$395.7 million).
Changsha Zoomlion Industry Science and Technology Development Co. Ltd will pay 163 million Euros for a 60 percent stake in the Italian construction machinery maker.
Goldman Sachs, Mandarin Capital Partners and the Chinese private-equity firm, Hony Capital, will hold the remaining stake.
The deal is expected to give Zoomlion a foothold in foreign markets and boost its overseas sales by combining CIFA's international brands, global sales and distribution network, said Zhan Chunxin, chairman and CEO of Zoomlion.
CIFA, headquartered in Milan, ranks third in the global concrete machinery market.
After the acquisition, Zoomlion is expected to be the largest concrete machinery maker in the global market.
CIFA will keep its management team and brand. Maurizio Ferrari, its board chairman, will keep his post and be deputy president of the new Zoomlion.
(Xinhua News Agency September 28, 2008)
